Housing News

More Homes Are Going Up for Sale in These Markets. How Buyers Can Use That to Their Advantage

After years of fierce competition over a scarce housing supply, homebuyers might finally see the market turn slightly in their favor.

Across much of the country, more homes have been going up for sale, especially in some housing markets. That gives buyers in these areas both more options and potentially more negotiating power as the spring housing season gets underway, according to Realtor.com.

In fact, the listings portal’s data shows that the number of homes for sale nationally has been rising for more than two years. And in several major metro areas, housing stock is growing especially quickly.

Additionally, the national median list price was $403,450 in February, a 2.1% decrease from the previous year, according to Realtor.com’s data. That gives buyers a little bit of a break.

“In general, the housing market is moving in a more buyer-friendly direction,” said Realtor.com Senior Economist Jake Krimmel. “[This] means inventory is building with homes sitting longer, more chances of a price cut, and a greater opportunity to negotiate on price than in years past.”

What rising housing stock means for buyers

For buyers entering the spring housing market, the rise in listings could bring several advantages. More homes on the market generally mean more choices, less urgency to make an offer immediately, and a better chance to negotiate on price or terms.

While the housing market hasn’t fully shifted to a buyer’s market everywhere, the increase in housing supply is a significant step toward creating a more balanced environment after years of severe supply shortages.

“But each metro area is different, with some moving more buyer-friendly and somewhere sellers might still hold an upper hand,” said Krimmel. “Check the data on inventory growth, price trends (including cuts), time on market, etc.”

5 housing markets where the number of homes for sale is rising the fastest

Below are five of the 50 largest metropolitan areas where housing stock in February increased the most year-over-year, according to Realtor.com data. (Metros include the main city and surrounding towns, suburbs, and smaller urban areas.)

1. Seattle

Housing stock change: +38.5%

Seattle leads the nation in housing stock growth among major metro areas, with the number of homes for sale increasing nearly 40% compared to a year ago. Much of this spike is driven by new listings entering the market.

In fact, new listings in the Seattle metro jumped 20.3% year-over-year, indicating that more sellers are finally listing their homes.

2. Louisville, Ky.

Housing stock change: +27.3%

Louisville, about an hour-and-a-half southwest of Cincinnati on the Kentucky-Indiana border, has experienced one of the biggest increases in housing supply in the Midwest. A surge in new listings has increased the number of homes available to buyers, giving them more leverage.

3. San Jose, Calif.

Housing stock change: +24.8%

Even in one of the most expensive housing markets in the country, housing inventory is increasing. Listings in the San Jose metro area have risen nearly 25% from a year ago, giving buyers in Silicon Valley more chances to enter the market.

4. Indianapolis

Housing stock change: +24.8%

The number of homes for sale in the Indianapolis metro area has also grown significantly, Markets like Indianapolis are often appealing to buyers as the prices remain more affordable than many larger coastal cities.

5. Charlotte, N.C.

Housing stock change: +24.6%

Charlotte rounds out the list with housing stock climbing nearly 25% year-over-year. As in Seattle, the increase is being driven in part by a rise in newly listed homes, up 11.4% year-over-year. That suggests more sellers are entering the market rather than simply unsold homes piling up.

Mortgage rates and preparation matter

Buyers may also want to pay close attention to mortgage rates as the spring season unfolds. Small changes can affect the size of monthly housing payments.

Getting preapproved for a mortgage before starting the home search can also give buyers an advantage. Preapproval clarifies how much a buyer can borrow and shows sellers that an offer is serious.

Buyers who come prepared may find more room to negotiate than they’ve seen in several years.